Assertion (A): The financial sector in India is regulated by the Ministry of Finance.
Reason (R): The financial sector includes financial institutions, such as commercial banks, investment banks, stock exchange operations and foreign exchange market.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A) is false but (R) is true.
Assertion (A): The financial sector in India is regulated by the Ministry of Finance. — False. The financial sector is regulated by the Reserve Bank of India (RBI).
Reason (R): The financial sector includes financial institutions, such as commercial banks, investment banks, stock exchange operations and foreign exchange market. — True. These are the institutions of the financial sector.
NCERT (2026-27): “Financial Sector Reforms: Financial sector includes financial institutions, such as commercial banks, investment banks, stock exchange operations and foreign exchange market. The financial sector in India is regulated by the Reserve Bank of India (RBI). You may be aware that all banks and other financial institutions in India are regulated through various norms and regulations of the RBI. …” |